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Maloofs owe the NBA $75 million, might lack votes

Posted on: April 12, 2011 8:51 pm
Edited on: April 12, 2011 8:56 pm
 
Posted by Royce Young



According to KFBK in Sacramento, the Kings have taken out a line of credit worth $75 million from the NBA. The report says that Kings spokesman Mitch Germann said the team used the line of credit but wouldn't say specifically on what.

This is something I did not know about, this line of credit thing. Evidently, the NBA has $2.3 billion available to every team in its line of credit program. The report says this: "NBA Spokesman Mike Bass says 19 teams have borrowed money through the league Line of Credit program. The max any team can borrow according to Bass is $125-million." News to me. And the Kings didn't hesitate in using it.

I think most people's first thought was that the number has something to do with relocation, which is very expensive. Just to relocate, you have to pay $30 million to the league as a fee. And that's just the start of it.

Obviously the franchise is struggling financially, hence the relocation talks. The Maloofs have seen their various business ventures sag a bit during the recession and the Kings are not immune as their value has dropped (according to Forbes) by almost $100 million.

Here's something interesting mentioned in this report though -- the Kings might not have the league support needed to relocate to Anaheim:
Sources have told KFBK that an approximately 200-page document outlining the Kings move to Anaheim currently sits on NHL Ducks Owner and Honda Center operator, Henry Samueli's desk. Just last week lawyers were combing through the finer details of the deal. Honda Center officials would not confirm if Samueli had signed off on the agreement.

Those close to the negotiations say Samueli and the Maloofs are not sure they have enough support from the rest of the league's owners to approve the move. Kings officials have said all four Maloof brothers will be attending the NBA Board of Governors' meetings this week in New York City to try and convince at least 15 other teams to allow the Kings to relocate.
It's already been made clear that both Laker owner Jerry Buss and Clipper owner Donald Sterling are not really in favor of making a new bedfellow in the Los Angeles area, but they Maloofs have a lot of convincing to do to get a majority of owners on their side.

With the last NBA relocation, the Sonics moving to Oklahoma City, 28 owners voted in favor of it. The only two that didn't were Mark Cuban and Paul Allen.

Relocation is a mess. It's not easy on anyone, especially fans. The Kings are clearly losing money and want to try and find greener, as in money-making, pastures. It's hard to keep up with this thing but maybe it's a little too early to etch the move in stone.
Comments

Since: Mar 17, 2008
Posted on: April 13, 2011 1:57 pm
 

Maloofs owe the NBA $75 million, might lack votes

I don't even know why the Queens want to move to Anaheim.  The entire LA/Metro area is Lakers Territory, including Orange County where I grew up.  The Clippers are not even a blip on the radar screen, so I can't imagine all of the Lakers fans in Orange County are now going to suddenly give up on years of winning championships to root for some low-end franchise moving down from Sacramento.  Lakers fans still remember the rivalry between the Kings teams from the late 90's and early 2000's that almost knocked us out of the playoffs.  I don't think that because the Kings are losers now that suddenly Lakers fans will forget about all that.

This potential move is so puzzling to me.  The Clippers would make more sense in Orange County, not because I think the current Laker fan base would suddenly switch over, but maybe some new, younger fans could latch on to Blake Griffin and have a new team.  This is especially true since Kobe is at the twilight of his career.  My kids won't even know who Kobe Bryant is by the time they are old enough to pay attention to the NBA.



Since: Nov 13, 2009
Posted on: April 13, 2011 11:19 am
 

Maloofs owe the NBA $75 million, might lack votes

The once proud Maloofs are getting more and more nervous about their NBA franchise and business opertions.  The Palms Casio resort is losing revenue, the Kings are coming off another torrid season, and relocating will costs too much.  The Maloofs boys and girl are better off selling the Kings.  But of course, that will never happen because like most wealthy folks, greed is their prime motivation.



Since: May 17, 2008
Posted on: April 13, 2011 10:28 am
 

Maloofs owe the NBA $75 million, might lack votes

Why don't they just move the Clippers to Anaheim? Anaheim gets an NBA team and the Kings stay in Sacramento
How does this help the Kings' financial problems?  If the Kings are really losing money in Sacremento, leaving them there is not going to help.  I don't necessarily think a 3rd team in the LA area is a good idea but, for the Kings, its probably better, at least short term, than staying where they are.



Since: Nov 2, 2006
Posted on: April 13, 2011 7:27 am
 

Maloofs owe the NBA $75 million, might lack votes

Why don't they just move the Clippers to Anaheim? Anaheim gets an NBA team and the Kings stay in Sacramento. I think it's stupid for the Clippers to play in the same building as the Lakers, the league's most popular team. In baseball, the Mets share New York with the more popular Yankees but they are in Queens, a slightly different geographic area. The White Sox share Chicago with the Cubs but they are in the "South Side" of Chicago. The Lakers and Clippers are essentially fighting for the same fan base and I'll take a shot in the dark and say the Lakers are winning.

At least if the Clippers are in Anaheim they can have a unique fan base of their own (Orange County) while remaining in Southern California. Why would anyone in Los Angeles be a Clippers fan now? The Clippers need their own fans.

Or if the Kings move to Anaheim, move the Clippers to Sacramento. I may not speak for Sacramento fans but if their choice was the Clippers in Sacramento or no NBA team, I think they would rather have the Clippers.

Nothing against Sacramento, but there are a lot of other cities in the US that would love to have their own NBA team. How about Vegas who has no pro team at all(and the NBA did have an All Star Game there so they may be more tolerant of Vegas than the other leagues)? How about Kansas City, where the Kings used to be? They have a fairly new arena. How about bringing NBA basketball back to Seattle? One way in the dark would be Louisville. They have no pro teams either but there's a shiny new arena there built for the University of Louisville. Anything rather than giving the Los Angeles area three teams when so many other cities would kill to have just one.




Since: Aug 9, 2009
Posted on: April 13, 2011 1:27 am
 

Maloofs owe the NBA $75 million, might lack votes

These goofballs need to go.  They are destroying a once proud and great fanbase of a city that loved basketball.  Their "daddy made" fortune is falling and they are panicking. 


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